Looking for a pathway to a home that doesn’t qualify for a mortgage under normal lending criteria? Chances are that if you’re looking at a large home or a luxury property, then you’re going to need to find a jumbo Loan. In Broward County, any home over $424,100 will need to be covered by Fort Lauderdale jumbo home loans. If you’re looking at a property that exceeds this figure, and you need some help with qualification and applying for a loan, then it’s time to start talking with the team at NHL Lending.
As one of the most experienced lenders in Florida, we have the expertise to ensure that you’re in the best position with any jumbo loan application. The following points will help you to understand some of the differences with jumbo loan qualification, allowing you to be fully prepared for your upcoming application.
How Good is Your Credit Score?
A good credit score is always essential when taking out a loan, but in the case of Fort Lauderdale jumbo home loans, a high score is going to be absolutely necessary. Depending on the value of the property, you’ll need a credit score of around 680 or better. While this figure is not set in stone, it gives you a good idea of how much the jumbo loans can differ from other loan types. If you’ve got your mind set on a property, then talk to us and we can generate an accurate FICO score report, and take a look at what your options are. The figure can be flexible at times, as long as you generally have a good credit history.
Provide Strong Evidence for Your Income
Although every loan application is closely scrutinized by underwriters, jumbo loans in Fort Lauderdale, FL, will be subject to a more intense vetting process. You need to have a suitable income, as well as current liquidity, to prove that you will be able to make regular payments on your mortgage. If you are self-employed, underwriters will be expecting to see two years’ worth of tax returns, as well as a minimum of two months’ worth of bank statements. These requirements are a general guideline, but may change slightly, depending on the property and your declared income.
The big difference when compared to a conforming loan, is the strict requirement for accounting liquidity. Due to the value of a jumbo property, there is more risk in lending. You need to satisfy underwriters that you have the liquidity not only to meet your current debts, but also the increased amount if you were to be approved for a jumbo home loan.
You’re Going to Need a Sizeable Down Payment
While some loans, such as an FHA loan, can offer a mortgage with just a 3.5% down payment, a jumbo loan is going to require at least 20%. If you’re considering a property that is worth $424,100 or more, then that 20% is quite a significant figure. Again, this is due to the fact that a jumbo loan is a much bigger risk for lenders.
Jumbo Loans in Fort Lauderdale, FL Should Not Exceed a Specific Debt Ratio
43% is around the ideal debt ratio for a standard conforming loan. However, depending on your actual net income, this number may change with a jumbo loan. Generally, an underwriter won’t like to see a jumbo mortgage with repayments that exceed 38% of your income. This can mean that there is little flexibility if you have other debts. Of course, all of these numbers may change, depending on your total net income and some other factors. Talk to us first, and we’ll let you know a realistic figure for your jumbo mortgage. Seeking prequalification can help you to avoid the disappointment of searching for a property before you’ve got your mortgage in order.
Talk to Expert Lenders in Florida
If you’re ready to step up with a jumbo loan and a new home in Florida, then you’re going to need to talk to the most qualified lending experts in the State. We provide an upfront mortgage service where you are treated as an individual, and your needs come first. Financing is flexible to meet your needs, even when it comes to Fort Lauderdale jumbo home loans.
We’re available today to discuss your mortgage needs, so take the first step towards financing your jumbo dream home.